Porsche fails to halt U.S. hedge fund lawsuit

(Reuters) – A New York state court has rejected a motion by Porsche SE to dismiss a $1.4 billion-plus lawsuit brought by 26 hedge funds alleging fraud and unjust enrichment stemming from its trading in Volkswagen’s shares four years ago.

Porsche SE, a holding company, whose carmaking business in now owned by Volkswagen, said late on Wednesday it continued to believe the damage claims were without factual and legal merit, adding it would appeal against the decision.

“Porsche SE also continues to maintain that the New York Supreme Court is not an appropriate forum for the resolution of the hedge funds’ alleged claims, and that their claims should be heard in Germany, where several of these funds have brought claims against Porsche SE,” the company said in a statement.